- Binance recently carried out its 16th BNB coin burn worth $393,673,653
- This was the second coin burn of 2021 with the 15th coin burn (Q1) being worth $595,314,380
- The two coin burns add up to a total of roughly $1 Billion of BNB destroyed
- The reduction in supply is bullish for the long term value of BNB
- However, short-term, Binance Coin faces a bearish market environment and uncertainty due to several global regulators cracking down on the exchange’s activities
Earlier this week, the crypto exchange of Binance announced its 16th BNB coin burn worth roughly $393,673,653.
According to the official announcement, the exchange destroyed 1,296,728 BNB as the exchange strives to keep true to the project’s goal of halving the total supply of Binance Coin from the original 200 million BNB, to 100 million BNB.
Binance Has Destroyed Approximately $1B Worth of BNB this Year
The 16th BNB coin burn is the second one this year with the last one, the 15th BNB coin burn of Q1, resulting in the destruction of $595,314,380 worth of Binance Coin. The two coin burns of 2021 have thus destroyed $988,988,033 worth of Binance Coin or roughly $1 Billion.
BNB Coin Burns are Bullish for the Long Term Value of Binance Coin
As with most coin/token burns in the crypto-verse, the quarterly reduction in BNB’s circulating supply is bullish for the long-term value of Binance Coin. This fact was highlighted by the team at Weiss Crypto Ratings through the following tweet.
Binance has burned over $1.1bn worth of BNB this year. This is a bullish event (it reduces supply), but it wasn’t priced in, nor did the price react afterward.
This could be a sign of mistrust in Binance, or perhaps BNB is simply being a victim of the general crypto mood.
BNB’s Value is Being Affected by Regulatory Pressure and a Bearish Chart
Further reiterating the comments by the team at Weiss, the price of Binance Coin (BNB) should have reacted to the most recent 16th coin burn. However, the price of BNB is currently being affected by the regulatory pressure by the various global jurisdictions.
At the time of writing, the following jurisdictions have either issued a warning to Binance; clarified it does not have authority to operate in the stated country; or ceased to support fiat deposits to the platform.
- Hong Kong
- Cayman Islands
Secondly, Binance Coin (BNB) is in bearish territory as highlighted in the following daily chart.
From the chart above, the following can be observed:
- Binance Coin is set to experience a death cross before the month of August
- Binance Coin is in bear territory, trading below the 200-day moving average
- Daily trade volume is in the red
- The daily MACD, RSI and MFI all point towards an ongoing pullback
- Binance Coin could find some support around the June 22nd low of $225